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RBC Global Asset Management (RBC GAM), a division of the Royal Bank of Canada, has launched four new exchange-traded funds (ETFs) designed to meet investors’ demand for investments generating regular monthly income.
The ETFs, all of which have been listed on the Toronto Stock Exchange (TSX), include three dividend-focused equity funds and one short- to mid-term fixed income fund.
The equity funds – namely RBC Quant Canadian Dividend Leaders ETF (RCD), RBC Quant US Dividend Leaders ETF (RUD) and RBC Quant EAFE Dividend Leaders ETF (RID) – are designed to be high-quality core dividend income solutions accessing Canadian, US and international equities, respectively.
Each fund employs a rules-based, multi-factor investment approach to build a portfolio of companies with higher-than-average dividend yields, strong balance sheets, positive market sentiment and potential for future dividend growth.
The fourth fund, the RBC 1-5 Year Laddered Corporate Bond ETF (RBO), provides exposure to a diversified portfolio of individual Canadian investment grade corporate bonds. The ETF offers the potential for a steady stream of income through exposure to a large, diversified portfolio of bond holdings.
Doug Coulter, president of RBC Global Asset Management, said: “We are pleased to be able to leverage the breadth and depth of RBC GAM’s investment teams’ expertise in the development of new solutions. Our ongoing dialogue with advisors and investors has confirmed a strong interest in higher-quality investments with a focus on long-term income across a range of geographies. These new ETFs address those needs, offering superior construction and very competitive management fees.”
Mark Neill, head of RBC ETFs, added: “We believe that these new dividend ETFs provide a superior level of portfolio diversification, quality and value with access to some of the most attractive dividend growth opportunities available in the market. [The] launches bring our total number of RBC ETFs in the marketplace to 12. Adding these new dividend and laddered corporate bond options to our solutions suite enables advisors and investors to construct high-quality portfolios with leading dividend-paying companies, all with an experienced and trusted investment manager.”
In addition to the four new ETFs, RBC GAM has also announced that it has reduced the management fee on seven of the existing RBC Target Maturity Corporate Bond ETFs, with maturity years ranging from 2015 through 2021, from 0.30 per cent to 0.25 per cent.